KUALA LUMPUR: Capital A Bhd has completed all requirements for the disposal of its airline business to AirAsia X Bhd, and the sale and purchase agreements with AirAsia X are now unconditional.
This achievement marks the final phase in consolidating all AirAsia airline operations under a single airline group as Capital A moves into a diversified travel and digital services company.
AirAsia Group will comprise AirAsia’s operations in Malaysia, Thailand, Indonesia, the Philippines and Cambodia, and AirAsia X.
The milestone follows the successful fulfilment of all key requirements, including the receipt of stakeholder consent letters, the securing of RM1 billion in private placement commitment letters for AirAsia X, and the resolution of a critical regulatory exemption from Thailand on Oct 17.
With these conditions satisfied, both companies are now ready to proceed with the remaining procedural steps.
These include Capital A’s capital reduction and distribution exercise, the allotment and listing of AirAsia X shares, and other regulatory processes. Completion is targeted for December, to be followed by the Practive Note 17 (PN17) uplift application within the same month.
This development not only completes the restructuring of Capital A’s airline operations but also represents the beginning of a new growth chapter.
Moving forward, Capital A will focus on building a robust, multi-platform travel and lifestyle ecosystem driven by technology, innovation, and data – strengthening its position as a next-generation aviation and digital powerhouse in the region.
Capital A CEO Tan Sri Tony Fernandes said the idea behind AirAsia Group going forward is simple – to operate under one unified brand.
“There will no longer be separate entities like AirAsia X; everything will be merged into a single airline group. This marks the next phase in AirAsia’s journey. Our focus now is to move beyond survival mode and return to growth, growing the airline sustainably and cash-positive.
“We want to invest wisely, ensuring that every step we take contributes to healthy, long-term growth rather than losses.
“Our target over the next 10 years is clear – we are currently operating with 255 aircraft, and we target to have over 600 aircraft, and this is just the beginning of our next growth chapter,“ he said at a special presentation today attended by senior management and staff from Capital A, AirAsia Group and subsidiaries.
Fernandes said Capital A expects to return to flying 90 million passengers next year, matching its pre-Covid pandemic levels last achieved in 2019.
The group ended the recent year with 68.8 million passengers, not due to lower demand, but because a portion of its fleet had not yet returned to service.
Over the past year, AirAsia has been progressively reactivating its 255 aircraft, and by 2026, the airline will have its entire fleet fully operational for the first time since before Covid-19.
Moving on, Fernandes said once the airline consolidation is completed, AirAsia Group will operate as a single, unified airline. Its new strategy focuses on building multiple major hubs across Asia rather than relying on a single home market.
The group’s long-term vision is to become the world’s first narrowbody low-cost network carrier, an airline that connects key cities efficiently with a fleet of single-aisle aircraft. This approach will enhance regional connectivity for passengers, improve aircraft efficiency, reduce operating costs, and open new opportunities for growth.
The plan centres on the next-generation Airbus A321neo and A321XLR aircraft, which offer greater range and flexibility to serve more destinations while maintaining AirAsia’s hallmark low-cost model.
Meanwhile, Capital A’s five remaining companies represent the next chapter of the group’s evolution beyond aviation.
Each business – ADE (engineering), Teleport (logistics), AirAsia MOVE (travel platform), Santan (F&B business), and its brand licensing and IP business Abc, which will be renamed to AirAsia NEXT.
Fernandes said that together, these brands have the potential to become market leaders in their respective industries and redefine the Asean business landscape.
“It’s quite remarkable that KLIA is now ranked the number one mega-hub in Asia and the fourth in the world, a recognition that reflects its growing global importance. AirAsia is proud to be the largest contributor to this success.
“For years, we have played second to Singapore, but today, KLIA stands ahead of some of the biggest airports in the region, from China and Bangkok to Seoul and Tokyo.
“It is an impressive achievement that shows how far we have come in building the most connected network in Asia. And we are not stopping here – we plan to double down on this momentum and continue strengthening our position as the region’s leading hub,” Fernandes said.
Capital A’s announcement today marks the beginning of the final phase of its restructuring, signalling that the company is now gearing up for its next chapter beyond PN17.
